Budget hearing set for Oct. 22

Sterling City Council approves additional appropriations, revenue

Randy Harrison (left) of the University of Colorado School of Public Affairs presented a certificate to Sterling Fire Department Chief Kurt Vogel for completion of the Certified Public Management program during the Sterling City Council meeting Tuesday (Sara Waite / Sterling Journal-Advocate)

STERLING — — Money was a topic of much discussion at the Sterling City Council meeting Tuesday night.

In addition to getting their first official look at the proposed 2014 budget and setting the public hearing for two weeks out — Oct. 22 — the council also dealt with a matter related to the 2013 budget.

The council approved first reading of an ordinance for additional appropriations of $735,889 in expenses for the year, and increased their revenue by $98,231.

A large portion of the increase appropriations comes from the insurance fund, where the city keeps its Tabor-mandated 3 percent emergency fund. With the declaration of a disaster due to the flood, the city has access to the $350,000 in the fund, which City Manager Joe Kiolbasa said is being used to cover any flood-related expenses.

He also said that he expects a large portion of those costs will be reimbursed by insurance, or covered by disaster aid from the Federal Emergency Management Agency (FEMA).

The increased revenue includes $2,088 from the state for the drunk driving enforcement program, $634 from Crime Stoppers, $234 from the Historical Society and a $95,275 transfer into the general fund from the water plant fund, which Kiolbasa explained helps cover administrative costs and salaries.

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Another budget-related item of discussion was how to handle requests from non-profits for funding that did not meet the criteria the council outlined. One applicant, the Sterling Baseball Organization, submitted a completed application but did not attend the work session where the council discussed the requests. Another, Northeast Colorado Housing Authority, did not include proof of its 501(c)3 status with its application, but has since submitted it. The third, Sterling Arts Council, had its non-profit status revoked by the Internal Revenue Service over failure to submit required documents.

The council reviewed the letters sent to the non-profits, and generally agreed that the language was not clear enough about what was required. They decided, on a 6-1 vote (Alice Pitcher voting no), to grant exceptions for the 2014 fiscal year to SBO and the housing authority, and to rewrite the letter for the 2015 requests so that it is clearer.

They also discussed the Arts Council request. Mayor Heather Brungardt said the council has submitted the paperwork to the IRS to get its 501(c)3 status reinstated.

Kiolbasa noted that at this point, all three requests are budgeted in the 2014 budget, and suggested that the council could make the funding conditional on reinstatement. They took no action on the matter, deciding that it could be discussed further during the budget hearing process.

The council also heard from two other non-profits Tuesday — Baby Bear Hugs and a peer recovery coaching program for substance addiction. Because the requests came outside the application period set by the city, the council encouraged the programs to apply next year.

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